EUR/USD: Euro Trading On A Stronger Footing This Morning

Investing.com – For the 24 hours to 23:00 GMT, the EUR declined 0.44% against the USD and closed at 1.0831, following the release of disappointing IFO survey data.

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Data showed that the German Ifo business climate index unexpectedly fell to a level of 108.7 in December, compared to market expectations of it to remain steady at a level of 109.0. Meanwhile, the nation’s Ifo business expectations index recorded a reading of 104.0 in December, same as in the previous month, while investors had expected it to rise to a level of 105.0.

Separately, the ECB, in its economic bulletin, indicated that the Euro-zone economy will continue to grow at a moderate pace in the near term before gaining some strength over the next two years, mainly driven by a growth in the domestic demand.

In the US, initial jobless claims fell to a level of 271.0K in the week ended 12 December, indicating a sustained recovery in the nation’s labour market and compared to a reading of 282.0K in the previous week. Market anticipation was for initial jobless claims to ease to a level of 275.0K. However, the nation’s manufacturing sector continues to struggle as the Philadelphia Fed manufacturing index surprisingly declined to a level of -5.9 in December, compared to market expectations of a reading of 1.0, and after registering a level of 1.9 in the previous month.

In the Asian session, at GMT0400, the pair is trading at 1.0837, with the EUR trading marginally higher from yesterday’s close.

The pair is expected to find support at 1.0800, and a fall through could take it to the next support level of 1.0763. The pair is expected to find its first resistance at 1.0877, and a rise through could take it to the next resistance level of 1.0916.

Going ahead, market participants will look forward to Eurozone and Germany’s consumer confidence survey data, scheduled to be released next week. Additionally, the US Q3 GDP, durable goods orders, housing price and the Reuters/Michigan consumer sentiment indices data, all due next week, will also be under the investor’s radar.

The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.

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